TSMC Subsidiaries Turn Profitable

TSMC's subsidiaries in Japan and the United States have reported significant financial successes in the first quarter. TSMC, a joint venture in Kumamoto, Japan, achieved its first profit of NT$951 million since mass production began in late 2024, indicating improved production utilization. United States — Arizona, a wholly owned subsidiary in the United States, posted an even larger profit of NT$18.81 billion, surpassing its entire 2025 profit, largely due to the AI boom. Both subsidiaries are expanding, with TSMC adjusting its second fab plan to use advanced 3nm processes and United States — Arizona commencing construction on its third fab and planning further investments. In contrast, TSMC in Germany, another TSMC joint venture, incurred losses as its fab construction is still ongoing. TSMC also received NT$505 million in subsidies from the governments of the United States, Japan, and Germany for its global investments.